While it may have once been acceptable to serve fuel with a minimal selection of drinks and snacks, most customers today are wanting much more.
As Mrs Mac’s Head of Distributors & Foodservice Sam Hewson says, with the lines blurring between convenience and more traditional foodservice outlets, consumers’ choice has increased and so have their expectations.
“To ensure the [P&C] channel remains competitive, and share is not lost into QSR, outlets need to ensure that that they continue to offer a quality range in food-to-go options,” she says.
“Consumers’ expectations are high, and they’re prepared to pay for a product that provides value for money.”
On a similar note, Meris Development chef Alex Prior says a foodservice offering creates an opportunity for “destination shopping or a reason for visiting store (aside from fuel)”.
“It can be any mealtime of the day or for snacking in between,” he says. “It can lead to multiple visits per week and even per day.
“Food offers the chance to increase average transaction value and basket size with upsells and meal deals as well as complimentary products – you rarely buy food without grabbing a drink to go with it.”
Talking more specifically, Foodservice Australia Exhibition Manager Liz Shaw says buying groceries and ready-to-eat meals from convenience stores is becoming “increasingly common”.
“Younger consumers appreciate the grab-and-go options and accessibility,” she says. “There’s a growing number of convenience stores starting to offer high-end foodservice products, leading to an increase in sales.”
Highlighting beverages, Ms Shaw says such sales remain strong with convenience stores now offering a wide range of options.
“Foodservice Australia exhibitors Bickford’s and Remedy Kombucha have plenty of options on offer,” she says.
Noting a further trend, Ms Shaw says the health focus has had a “huge impact” on the P&C channel, with consumers now expecting to see the range of available options including healthier alternatives.
“Foodservice Australia exhibitor Chobani has seen increased interest from stores wanting to stock their yoghurt range,” she says. “This trend has also shown a rise in protein-rich options such as bliss balls, bars and cookies, as well as snack options such as nuts, popcorn and other healthier alternatives.
“Fresh options are also a great asset to a convenience store. Sandwich and wrap supplier and [Foodservice Australia] exhibitor Azura Fresh has a wide range of options to service the lunch grab-and-go market.”
Ms Shaw also notes the introduction of third-party mobile delivery services, such as DoorDash, that have given customers the opportunity to order their favourite foods from home.
“Convenience stores that embrace mobile ordering can appeal quickly to a growing target market with sizeable purchasing power,” she says.
“In addition, to boost category sales, retailers should be looking for new food and beverage items to stock, as well as any equipment, refrigeration and technology that can streamline the customer experience.”
Monetary value aside, Mr Prior says that having a good foodservice offering will go a long way in retaining repeat customers, bringing loyalty over competitors “in the same way we build a relationship with our favourite coffee shop and barista”.
“If your customer sees the convenience of getting petrol, milk, bread and a good consistent food offering simultaneously with little to no wait time, it helps make you front of mind as a destination,” he says.
“With potentially huge margins on convenience foods combined with self-contained and automated equipment, there’s potential for a business to make the food offering into a profit with little or no extra cost to labour, and not just a thing you have on the side or hidden down the back.”
Read more about foodservice trends and benefits, and what retailers and brands are offering in the latest issue of Convenience World.
